E-Commerce Legal Environment and Ethical Issues

Topic 14
Case in China: Right in
Intellectual Property right?

ay !""# $ %isney release &lm 'all-E &lm availa(le

)ree on one Chinese video sites* +,-com- It .as (e)ore
%isney produced the &lm in %/% )ormat on 0ov !""#-

1olution: Later* %isney invested 21" mill in +,-com a

popular Chinese video 3 &le sharing site- 4ave 55 million
registered mem(ers on !""6-

The aim is to have the po.er 7 authority to cur( pirated

video 3 ta8e action against copyrighted violators

/iacom 9o.ner o) i:ilm-com; sued <oogle=s >ouTu(e )or

1 (illion 3 re?uest to see data(ase contain in)o a(out
all videos in >ouTu(e

1olution: /iacom lost $ @udge in )avor to <oogle (ecause

/iacom also practiced the same procedure since year
!""+A
1ummary

/iolations o) intellectual property right the

ma@or pro(lems in EC environment $ so)t.are*
movies* music and (oo8s-

Pro(lems arise due to several reasons:-

%iBcult to monitor millions o) users and their

postings

any countries do not have much legal o)

protection right $ diBcult 3 eCpensive to
en)orce
Ethical Challenges and
<uidelines

Ethics -The (ranch o) philosophy that deals .ith .hat is

considered to (e right and .rong

4o. individual choose to interact

0ature o) duties among each other

:or eCample* one=s duty is not to intrude on a person=s privacy

Privacy - The right to (e le)t alone and )ree o) unreasona(le

personal intrusions

Issues of privacy, ownership, control and security

must be confronted to understand ethical challenges
in EC
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La.s depicts ethical principles* (ut (oth are not same-

Dnethical* may (e not illegal-

La. is coding o) ethical norms* not all ethical codes are

incorporated into pu(lic la.-

ETHICA P!I"CIPE# A"$ %&I$EI"E#

E'ample( )ho *wns &ser-%enerated Content+

,aceboo- case . start on year /0012 3&sers give ,4

irrevocable, perpetual, none'clusive, transferable,
fully paid, worldwide license5 to use retain 6 display
content posted78 . enable ,4 to sell customer data
to mar-eters9 :,4 need more revenue sources;
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Ethical Challenges and
<uidelines

4usiness ethics - E )orm o) applied ethics that

eCamines ethical principles and moral or ethical
pro(lems that arise in a (usiness environment

The Issues of Internet Abuse in the )or-place

!! hours online every .ee8* ?uarter o) it )or personal

matters

<onitoring Employees=Is It Ethical+

1py.are $ Latitude (y <oogle : giving <oogle the a(ility to

monitor people=s .herea(outs
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Ethical Challenges and
<uidelines

EC ETHICA I##&E#

Related to legal issues:

Intellectual property rights $ o.nership and value o) in)ormation

and intellectual property-

Privacy $ collection* storage and dissemination o) in)ormation

a(out individuals-

:ree speech versus censorship 9to control oFensive* illegal 3

potentially dangerous in)ormation in Internet;

Consumer and merchant protection against )raud

Codes of Ethics $ corporate codes o) ethics state the

rules and eCpected (ehaviors and actions $ re)er EChi(it
14-!G code o) ethics more li8e a simple rules o) eti?uette
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Ethical Challenges and
<uidelines
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Intellectual Property La.

I"TEECT&A P!*PE!T> I" E-C*<<E!CE

(some term & defnition)

intellectual property:IP;
Creations o) the mind* such as inventions*
literary and artistic .or8s* and sym(ols* names*
images* and designs* used in commerce

intellectual property law

Erea o) the la. that includes patent la.*
copyright la.* trademar8 la.* trade secret la.*
and other (ranches o) the la. such as licensing
and un)air competition
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Intellectual Property La.

copyright
En eCclusive right o) the author or creator o) a
(oo8* movie* musical composition* or other
artistic property to print* copy* sell* license*
distri(ute* trans)orm to another medium*
translate* record* per)orm* or other.ise use

infringement
Dse o) the .or8 .ithout permission or contracting
)or payment o) a royalty
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Infringe break law / agreement;
intrude on a right or privilege
Intellectual Property La.

digital rights management :$!<;

En um(rella term )or any o) several arrangements
that allo. a vendor o) content in electronic )orm to
control the material and restrict its usage

fair use
The legal use o) copyrighted material )or noncommercial
purposes .ithout paying royalties or getting permission

patent
E document that grants the holder eCclusive rights
to an invention )or a &Ced num(er o) years
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Intellectual Property La.
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trademar-
E sym(ol used (y (usinesses to identi)y their
goods and servicesG government registration o)
the trademar8 con)ers eCclusive legal right to
its use

trademar- dilution
The use o) )amous trademar8s in pu(lic that
diminishes the capacity o) the mar8 to distinguish
goods or services* or tarnishes the mar8 in the eyes
o) the consumer
Intellectual Property La.

,A" #ITE# ?# HATE #ITE#

:an 1ites may violates IP right $ e-g people get

advanced copy o) ne. movies or T/ programs

4ate 1ites disseminate negative comments 3

can cause pro(lems )or corporations

Cyberbashing
%omain name that criticiIes an organiIation or
person
E-g paypalsuc8s-com* .almart(lo.s-com
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ET4ICEL I11DE1 I0 EC:-

Privacy Rights and Protection

:ree 1peech online /1 Privacy Rights

The Legal 3 Regulatory Environment

E-%iscovery

Cy(er(ullying
Privacy Rights* Protection*
and :ree 1peech

Privacy $ the right to (e le)t alone 3 )ree )rom unreasona(le personal intrusions- 4ave (een legal*
ethical and social issues in most countries-

Social network change the landscape of privacy and its protection $ the eCplosion o)
online communication technologies create compleC* ne. ethical dilemmas )or (usiness 3
government agencies

P!I?AC> !I%HT# A"$ P!*TECTI*"

opt-out - Jusiness practice that gives consumers the opportunity to re)use sharing in)ormation
a(out themselves- E-g :J list $ help to organiIe )riends* can apply individual privacy policies

opt-in - Egreement that re?uires computer users to ta8e speci&c steps to allo. the collection o)
personal in)ormation
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,!EE #PEECH *"I"E vs P!I?AC> P!*TECTI*"

,ree #peech kebebasan bersuara

ECample case: Epril !"1" - E D-1 motorcyclist &lmed its

o.n arrested (y non-uni)ormed police oBcer in pu(lic
place- Posted it to >ouTu(e- 0o. )acing charged + years
in prison )or illegally ta8ing up the video .7o the police
ignorance- 1till &ghting under the name o) Free Speech.

,ree #peech *nline vs Child Protection .a debate

To protect children )rom oFensive online content regarding

to &lter technologies in schools and li(raries

legal precedent - E @udicial decision that may (e used as a

standard in su(se?uent similar
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Privacy Rights* Protection*
and :ree 1peech

THE P!ICE *, P!*TECTI"% I"$I?I$&A@#

P!I?AC>

'ith the po.er)ul computers* targeting algorithm

(arriers )or accessing 3 manipulating in)ormation
)rom a large-scale data(ase JEI0< ELII0ETE%A

1everal cases:-

Eirport security personnel in Europe circulating image )ull

(ody scan )or airline travelers $ scan (ody (e)ore (oarding
is a D1TA

Craiglist in D-1 $ top provider o) prostitution services- Lead

to reasons o) missing children* runa.ays* a(used .omen*
.omen traBc8ing- Read more I0 TEKT JLLM a(out their
cases 3 ho. police authority in Illinois &ght using court=s
order )or Craiglist to shut do.n their operationsN-
Privacy Rights* Protection*
and :ree 1peech
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H*) I",*!<ATI*" A4*&T I"$I?I$&A# I#

C*ECTE$ A"$ &#E$ *"I"E

)ebsite !egistration $ mar8eting .e(sites* online

magaIines* vendors* government sites* social net.or8s

Coo-ies $ allo. .e(sites to collect in)o a(out user=s

pre)erences* interest 3 sur&ng patterns

#pyware . as a threat towards privacy and

intellectual property
Ell un.anted so)t.are programs designed to steal
proprietary in)ormation* or that target data stores
containing con&dential in)ormation
Privacy Rights* Protection*
and :ree 1peech

!,I$@s Threat to Privacy $ tag at clothes* real time trac8ing

*ther <ethods $ to collect data a(out people:-

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Privacy Rights* Protection*
and :ree 1peech

P!I?AC> P!*TECTI*" 4> I",*!<ATI*" TECH"**%IE# $ in social

net.or8* can used 0>LJ* a special encryption so)t.are* operate on a )a8e
data- Lther so)t.are programs 3 IT procedures to protect privacy:-
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Privacy Rights* Protection*
and :ree 1peech
Lther EC Legal Issues

THE E%A A"$ !E%&AT*!> E"?I!*"<E"T $

advances in communication 3 IT* ease o) data searching
has opened to.ards : stealth discovery* privacy
invasion* un)air misuse o) personal in)ormation*
copyright in)ringement* identity the)t

electronic discovery :e-discovery;

Eny process in .hich electronic data is sought* located*

secured 3 searched .ith the intent to use as evidence in
civil or criminal legal case-

%iscovery in civil litigation that deals .ith in)ormation in

electronic )ormatG also re)erred to as electronically stored
information 9E1I;

Types of $ata E-$iscovery $ teCt* images* calendar &les*

data(ases* spreadsheet* audio &le* animation

How Electronic $iscovery Is &sed $ in electronic )orm

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Lther EC Legal Issues

cyberbullying
The use o) in)ormation and communication
technologies to support deli(erate* repeated*
and hostile (ehavior (y an individual or group*
that is intended to harm others
- Intended to hurt 3 em(arrass other people
- includes threats* seCual remar8s* su(@ect o)
ridicule in )orums* posting )alse statement

Cyberbullying :children; ?ersus

Cyber#tal-ing :Adult to Adult
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Consumer and 1eller
Protection )rom Lnline
:raud

C*"#&<E! :4&>E!; P!*TECTI*"

!epresentative Tips and #ources for >our Protection (page

744)

a8e sure enter correct .e(sites

Chec8 )or un)amiliar sites )or the address* telephone num(er

Chec8 a(out the seller on trust veri&cation site $ JJJLnline* TRD1Te

Third-Party Assurance #ervices

Protection (y Third-Party Intermediary E-g E(ay

TRD1Te=s OTrustmar8P $ nonpro&t group to (uild users trust H con&dence

Jetter Jusiness Jureau $ provides reports on (usiness .here consumer can

revie. (e)ore ma8e ourchase

'hich? $ ensure online traders a(ide the code proactive guideline

'e( Trust 1eal and Lthers $ similar to TRD1Te

Evaluation (y Consumers $ include product and vendor evaluation

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Consumer and 1eller
Protection )rom Lnline
:raud

C*"#&<E! :4&>E!; P!*TECTI*"22:cont;72

Computer ,raud and Abuse Act :C,AA;

a@or computer crime la. to protect government
computers and other Internet-connected computers

#EE! P!*TECTI*"

1ellers also can (e attac8ed illegally3 unethically

Customer deny place orders* copyright C% (ut sell it to

others* )alse payment* customer use diFerent name

)hat Can #ellers $o+ $ cardscop-com* (iometric etc

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Consumer and 1eller
Protection )rom Lnline
:raud

P!*TECTI"% 4&>E!# A"$ #EE!#(

EECT!*"IC A"$ $I%ITA #I%"AT&!E#

electronic signature
E generic* technology-neutral term that re)ers to the
various methods (y .hich one can OsignP an
electronic record

Authentication and 4iometric Controls

%*?E!"<E"T !E%&ATI*" *, E-C*<<E!CE

To protect (oth (uyers and sellers

~~Abisshhh~~
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